Greenville, South Carolina, can be a great place to work. However, it’s also an excellent retirement destination: we have an attractive mix of warm weather, affordability, and fun activities for seniors (and, indeed, the entire family). 

Unfortunately, today’s inflation, market volatility, and a possible recession can make even a local move between towns costly. That’s where a financial advisor comes in. The insights of an experienced fiduciary can help you relocate efficiently and cost-effectively. 

This article explores these topics:

• What To Consider Before Retiring & Relocating
• Take Advantage of Tax Breaks for Moving
• Investing Wisely After Retirement & Relocation
• Work With a Financial Advisor in Greenville, SC

What To Consider Before Retiring & Relocating

Even in milder economic days, planning to retire in Greenville, SC, can be a daunting task. Today’s inflation, market instability, and the possibility of a recession this year mean that even the affluent are wise to manage their finances carefully. That’s the bad news.

The good news, in this case, is that the cost of living in South Carolina is relatively low compared to many other states. This can make it a particularly attractive option for retirees. However, it's worth the research time to verify that the cost of living in your desired area suits your financial goals. 

Housing costs and insurance premiums sometimes vary widely by location, so be sure to factor these expenses in. The same goes for property taxes, but another potential upside is the fact that South Carolina isn’t a high-tax locale. For example, the state doesn't tax Social Security benefits. It offers a deduction for retirement income, as well. 

Access to quality healthcare is also an important consideration for retirees, eventually. Although South Carolina has several highly-regarded hospitals and medical centers, it's important to research the availability of more specific services in the area you're considering. 

There are plenty of recreational opportunities facilitated in the Palmetto state, as well. The wide variety of options includes golfing, boating, hiking, and fishing. South Carolina also has a rich history and cultural heritage: There are numerous museums and historical sites. 

Take Advantage of Tax Breaks for Moving

In addition to the state’s hands-off approach to Social Security benefits, those over the age of 65 in South Carolina are eligible for a deduction from any source of income. 

Again, it has a relatively low state income tax rate in general: The top marginal rate is 7%, which compares favorably with states like California and New York, which have top marginal rates of 12.3% and 10.9%, respectively.

Any Long-Term Capital Gains receive a 44% deduction off the top. After that, they are taxed at the state income tax rate of 7% instead of the federal rate of 15%.

South Carolina also has a homestead exemption for property taxes. This means that if you own a home in South Carolina and use it as your primary residence, you can receive a tax break on the value of your home for up to a certain amount. This can be especially advantageous for retirees with high-value homes seeking to minimize their property tax burden.

Planning your move at the right time may save you a considerable amount of money in state taxes. So, consider relocating before January 1 of the year you retire to qualify for the first phase of South Carolina's retirement-income tax exemption. Also, plan your move so that you live in the state for at least 183 days to avoid dual taxation.

Financial Planning vs. Comprehensive Financial Planning? We Explain the Difference Here.

Investing Wisely After Retirement & Relocation

Once you’ve moved, it's a good idea to reassess your investment portfolio and make sure that it's properly diversified. In other words, spreading equity across a variety of asset types can potentially minimize your risk and maximize your returns. By varying your investments among stocks, bonds, real estate, and commodities, for example, you can reduce the risks sometimes associated with over-investment in a single vehicle.

When the market takes a downturn, this strategy can help insulate against losses because you aren’t holding enough of a long enough position in any single asset type to harm your overall portfolio. This sometimes means that your other investments—not only aren’t affected but—gain enough, on their own, to offset those initial losses.

Real estate can be an especially advantageous investment for affluent retirees. Rental or commercial properties, for instance, can provide a steady stream of income while helping to diversify your portfolio. However, these investments always require prior research and due diligence. Evaluate potential properties, consider the local real estate market, and factor in any ongoing maintenance costs before committing resources.

Work With a Financial Advisor in Greenville, SC

Clocking out of the workforce for good can sometimes generate equal amounts of stress and relief. The minutiae of relocating soon after may seem more complex than usual as a result. Both of these factors, in turn, can leave you feeling fatigued. That’s why it's important to work with a fiduciary wealth manager who can help you navigate your finances.

Rather than risk getting off track from your financial goals, you can delegate managing your savings and assets to an experienced professional. After taking an inventory of our personal values, he or she can help you develop a personalized investment strategy based on your unique objectives and risk tolerance as an investor.

The right advisor won’t be content to simply help protect your money, however. Financial advising, fundamentally, is an ongoing process rather than a one-and-done service. This means that the advisor you choose should vigilantly seek to limit your financial risks (such as due to a lawsuit), reduce your tax liability, and pursue solid returns over the long term. 

Again, make sure that the professional is a fiduciary, as well. Anyone can claim to be a “financial advisor” today. However, that doesn’t guarantee that they are certified, knowledgeable, or experienced enough to meet your needs. A fiduciary, meanwhile, is accountable to the SEC and sworn to put their client’s financial interests ahead of their own at all times. 

Global View Investment Advisors are fee-only fiduciary investment advisors in Greenville, South Carolina. Contact us to learn more.